Cooperative Societies in India for UPSC Exams
Cooperative societies have played a critical role in promoting social and economic growth over the years. Read on to learn about cooperative societies for UPSC exams.
Deeksha Dixit10 Jul, 2024
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Cooperative Societies: You all must have heard about the AMUL movement, one of the most successful and famous examples of cooperative societies. Amul's inspiring rise highlights the significance of cooperative societies in transforming the lives of millions.
In India, cooperative societies date back to the early 20th century. Since then, these voluntary associations have empowered many marginalized communities, promoting economic development. This led to specific provisions for cooperative societies in the Constitution of India.What is a Cooperative Society?
A cooperative society is an autonomous and voluntary association where people with a common economic, social, or cultural goal join hands to achieve their purpose. They operate through the principles of democracy, equality, equity, and mutual help. Basically, in cooperative societies, people come together and pool their resources for a common benefit. These societies are completely owned and controlled by their members, with each having equal voting rights and sharing the benefits and risks equally.Cooperative Societies in India
In India, a Cooperative society could be formed as per the provisions of the Co-operative Societies Act of 1912 when a minimum of 10 people over the age of 18 join together for a mutual objective. However, this central act has been repealed in the majority of the states, which have their own Cooperative Societies Act. This is because ‘Cooperative Societies’ is a state subject under Entry No. 32 of the Seventh Schedule Constitution of India . Some of the top Cooperative Societies in India are:- Indian Farmers Fertiliser Cooperative Limited (IFFCO) : IFFCO is one of the largest cooperative societies in the world, producing fertilizers and providing support to farmers across India.
- The National Cooperative Development Corporation (NCDC): NCDC is a statutory corporation established by the Government of India to promote and facilitate the cooperative movement in the country.
- The National Agricultural Cooperative Marketing Federation of India (NAFED): NAFED is a cooperative federation of agricultural producers' cooperatives, involved in the procurement and marketing of agricultural commodities.
Also Read: International Day of Cooperatives 2024
History of Cooperative Societies in India
The history of cooperative societies in India can be divided into four major periods: pre-independence, post-independence, the economic liberalization period, and modern times. The key developments in each period are as follows:| History of Cooperative Societies | |
| Period | Key Developments |
| Pre-Independence (1904-1947) |
|
| Post-Independence (1947-1991) |
|
| Liberalization Period (1991 Onward) |
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| Modern Times |
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Role of Cooperative Societies
Cooperative societies play a crucial role in the economic and social development of India. Some of the key roles and benefits of cooperative societies include:- Empowering marginalized communities: Cooperative societies help empower marginalized communities, such as small and marginal farmers, by providing them access to resources, credit, and markets.
- Promoting economic development: Cooperative societies contribute to the economic development of the country by promoting entrepreneurship, creating employment opportunities, and enhancing the productivity and income of their members.
- Social Integration: By bringing people together for common economic activities, cooperative societies foster social cohesion and community development.
- Rural development: Over the years cooperative societies have been one of the important sources of rural development by bringing together people for a common purpose of ‘self-empowerment’.
Constitutional Provisions for Cooperative Societies
Due to the historical significance and crucial role played by cooperative Societies, the Constitution of India provides a framework for the formation and regulation of cooperative societies. The 97th Constitutional Amendment Act of 2011 was a significant step towards promoting and regulating cooperatives in India. Some of the key features of the 97th CAA are:- Autonomous Functioning: Emphasizes the autonomy and independence of cooperative societies.
- Regular Elections: Mandates regular elections to ensure democratic management.
- Professional Management: Stresses the need for professional and transparent management of cooperatives.
| Constitutional Provisions for Cooperative Societies | ||
| Provision | Article/Part | Description |
| Right to form cooperatives | Article 19(1)(c) (Part III) | Fundamental Right : Grants citizens the fundamental right to form cooperatives by inserting this word under Article 19. |
| Promotion of cooperative societies | Article 43 B (Part IV) | Directive Principles of State Policy: Encourages the State to promote voluntary formation, autonomous functioning, democratic control, and professional management of cooperative societies. |
| New Chapter | Articles 243 ZH – 243ZT | Inserted a new part in the Constitution for cooperatives, outlining provisions for their formation, management, and regulation. |
| UPSC Related Articles | ||
| UPSC Mains Subjects | IAS Officer After 12th | Newspaper for UPSC Exam |
| UPSC Mains Syllabus | Pratigya Diwas 2024 | Indus Water Treaty |
Cooperative Societies FAQs
What is the definition of Cooperative Societies for UPSC?
A cooperative society is an autonomous, voluntary association of individuals united to meet common economic, social, or cultural needs.
What are the key constitutional provisions for Cooperative Societies?
Key constitutional provisions for Cooperative Societies include Article 19(1)(c), Article 43 B, and Part IX B.
Who controls the cooperative society?
Cooperative societies are controlled by their members, who operate them democratically with each member having equal voting rights.
What is the main objective of a cooperative society?
The main objective of a cooperative society is to promote the economic and social welfare of its members by pooling resources.
What is the difference between SHG and cooperative society?
Self-Help Groups (SHGs) are informal groups that aim to promote self-employment and empowerment, primarily focusing on savings and credit, while cooperative societies are formal entities with a broader range of economic activities and democratic control by members.
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